05 Jul Warren Buffett Warns of Inevitable Stock Market Losses
Warren Buffett is known as the “Oracle of Omaha” and is one of the most successful investors of all time. He issued this warning in a recent annual letter to shareholders:
Stock market losses of 50% or more are not only possible but inevitable in the future.
Buffett explained that investors should expect losses similar to those experienced previously during the 53-year history of Berkshire Hathaway’s stock. (Buffett is CEO of that company.) In the past 53 years, some of the worst losses ranged from 37.1% to 59.1%.
Buffett noted that, “… our shares (and others) will experience declines resembling those (previous declines). No one can tell you when this will happen. The light can at any time go from green to red without turning yellow.”
The equities market has been in the longest-running bull market in modern history. This is the first bull market to ever make it to its 10th birthday… which happened months ago. So, this is why Buffett knows we’re on borrowed time.
Volatility has been like a roller coaster ride at Six Flags. This volatility often indicates the coming of a full-blown market crash.
Paper gains make people feel wealthy, but that is an illusory feeling.
This is where hope and reality diverge. Some people think that somehow the market will act differently and keep going up, and up, and up. They think they will know exactly when to get out at the very top and make the most money conceivably possible.
But of course, this market isn’t different than prior markets. Statistics prove that most people will stick their head in the sand and experience massive losses when the crash comes.
And more statistics show that Americans are spending money – not saving. And that debt is fueling spending. Now, debt is climbing to all-time highs.
Most people are just not prepared for a market meltdown, and that lack of planning is a recipe for financial disaster.
So what can you do?
- Start Building an asset protected fortress now – you can do this by structuring your private family bank and locking in any gains you have realized from the equities market.
- Don’t stick your head in the sand and ignore the market statistics. The longest bull markets go out with a bang. If most of your savings are in the stock market, you’re in for a bad surprise. This will leave you heartbroken. Sometimes greed clouds better judgment and prevents you from making a safe plan. Get out while you can and bank your profits.
- Put your money in the safest place on earth: a Private Banking Strategy.
A properly structured Private Banking Strategy will provide guaranteed, predictable grown every year – even when the stock market crashes. This structure has paid dividends and provided predictable growth through the Civil War and the Great Depression, and every other economic downturn experienced in US history.
You have complete liquidity and no tax consequences when putting money in or taking money out.
This structure will provide you with the financial security and peace of mind that you’ve been looking for.